PRO DEX INC (PDEX)·Q3 2025 Earnings Summary

Executive Summary

• Q3 FY2025 delivered strong operating results: revenue up 22% YoY to $17.4M, operating income up 65% YoY to $3.6M, and diluted EPS $0.98; EPS benefitted from $1.145M in investment gains (unrealized + realized) this quarter, which management notes can be volatile .
• Against S&P Global consensus, revenue modestly missed (1.6% below $17.7M*) while EPS on S&P’s “Primary EPS” basis ($0.85*) materially beat (~+81% vs $0.47*), with company-reported diluted EPS at $0.98 . Values retrieved from S&P Global.
• Mix shift to the next-gen orthopedic handpiece (+$6.2M) more than offset legacy product declines (-$4.4M) and was supported by higher repairs (+$0.7M); gross profit rose 45% YoY and mix was cited as favorable .
• Management reiterated confidence in a record revenue year, citing momentum from the next-gen ramp (“tracking toward another record fiscal year from a revenue perspective”) . Near-term stock catalysts: clarity on durability of next-gen demand, inventory normalization, and sustainability of margin mix.

What Went Well and What Went Wrong

• What Went Well

  • Next-gen handpiece ramp drove growth: +$6.2M shipments offsetting legacy declines, plus +$0.7M repairs; net sales +22% YoY to $17.4M .
  • Favorable mix lifted profitability: gross profit +45% YoY to $5.8M, operating income +65% YoY to $3.6M .
  • Management tone constructive: “We are tracking toward another record fiscal year from a revenue perspective” — CEO Rick Van Kirk .

• What Went Wrong

  • Revenue modestly missed S&P Global consensus (~$17.4M vs $17.7M*, ~1.6% shortfall). Values retrieved from S&P Global.
  • EPS quality includes non-operating gains: $0.55M unrealized and $0.60M realized gains on investments boosted GAAP EPS; management cautions on valuation volatility .
  • Inventory elevated ($23.4M vs $15.3M at 6/30/24), suggesting working capital intensity into the ramp .

Financial Results

Quarterly trend (oldest → newest):

Year-over-year comparison (Q3 FY2024 → Q3 FY2025):

Q3 FY2025 vs S&P Global consensus:

• Values retrieved from S&P Global.

KPIs and operational drivers:

Segment breakdown: Not disclosed in the company’s Q3 materials .

Guidance Changes

Note: The company did not provide explicit numeric ranges for revenue, margins, OpEx, OI&E, or tax rate in Q3 communications .

Earnings Call Themes & Trends

No Q3 FY2025 earnings call transcript was found in our document set after targeted searches; analysis below reflects trends sourced from company 8-K press releases (Q1–Q3 FY2025) .

Management Commentary

• “We are pleased with our performance including increasing sales and operating income. We are tracking toward another record fiscal year from a revenue perspective, and I continue to be grateful to the entire Pro-Dex team for their contributions, resilience, and teamwork.” — Rick Van Kirk, CEO (Q3 PR) .
• “We are pleased with our second quarter and year-to-date results. We are ramping up our staff to meet the commitments of our increased backlog. We are excited about our continued sales growth and looking forward to the challenges ahead.” — Rick Van Kirk, CEO (Q2 PR) .
• “We are pleased with our first quarter results and excited to have facilitated the initial shipment of the next generation handpiece to our largest customer. We expect to ship production volumes of the new handpiece during the second half of this fiscal year.” — Rick Van Kirk, CEO (Q1 PR) .

Q&A Highlights

• No Q3 FY2025 earnings call transcript was located in our dataset after targeted searches; no Q&A highlights available. The 8-K press release includes summary commentary only .

Estimates Context

• Q3 FY2025 revenue of $17.414M modestly missed S&P Global consensus of $17.700M (~1.6% shortfall); S&P “Primary EPS” actual of ~$0.85 beat $0.47* consensus by ~81% (company-reported diluted EPS was $0.98) . Values retrieved from S&P Global.
• The discrepancy between S&P “Primary” EPS (~$0.85*) and company diluted EPS ($0.98) likely reflects S&P’s normalization for non-operating investment gains (unrealized $0.55M; realized $0.60M) and associated tax effects as noted by management . Values retrieved from S&P Global.

Key Takeaways for Investors

• The new handpiece ramp is the core growth driver and is reshaping mix; Q3 showed $6.2M of shipments that offset a $4.4M legacy decline and lifted profitability .
• Revenue slightly missed consensus, but EPS materially beat on S&P’s normalized basis; investors should parse EPS quality given the sizable, volatile investment gains this quarter . Values retrieved from S&P Global.
• Gross profit rose 45% YoY with favorable mix; implied GM ~33% vs Q2’s 30% and Q1’s 35%, suggesting healthy but variable margin dynamics through the product transition .
• Inventory is elevated as the company supports production; monitor working capital intensity and whether cash generation improves as shipments normalize .
• Management’s tone is confident on achieving a record revenue year; near-term catalysts include cadence of next-gen orders, repair trends, and any quantified FY25 outlook .
• With revenue concentration in the largest customer highlighted in disclosures, watch durability of next-gen adoption and the pace of legacy roll-off .
• If the company hosts a call or provides more detail in its 10-Q/MD&A, look for updates on margin sustainability, OpEx trajectory, and any commentary on balancing growth with working capital .

Notes:

• We searched for the Q3 FY2025 earnings call transcript but did not find an archived transcript in our document set; analysis relies on the Q3 8‑K press release and prior quarter press releases .
• Asterisked estimate figures are from S&P Global; Values retrieved from S&P Global.